Absolutely, you can—and often should—write a letter of wishes to accompany your testamentary trust, providing guidance to the trustee without creating legally binding obligations.
What is a Testamentary Trust and Why Add a Letter of Wishes?
A testamentary trust is created through your will and comes into effect *after* your death. It dictates how and when your assets are distributed to your beneficiaries. While the trust document itself outlines the legal framework, it can sometimes lack the nuance needed to reflect your personal desires. A letter of wishes serves as a companion document, allowing you to express your hopes and preferences regarding the trust’s administration and the well-being of your beneficiaries. Approximately 55% of estate planning attorneys recommend letters of wishes for clients with complex family dynamics or specific charitable intentions. It’s not a legal document in the same way as the trust itself, but it provides invaluable context for the trustee, helping them to interpret and apply the trust’s terms in line with your wishes. Think of it as a personal message from you, guiding the trustee long after you’re gone.
What Can I Include in My Letter of Wishes?
The possibilities are quite broad. You can detail your philosophical approach to wealth distribution—do you want your beneficiaries to be encouraged to pursue education, start a business, or give back to the community? You could outline specific needs or concerns for individual beneficiaries—perhaps one child has special needs, or another is financially irresponsible. You can even specify preferences for investment strategies or charitable giving. For instance, you might express a desire for socially responsible investing or earmark funds for a particular cause. However, it’s crucial to remember that the letter of wishes isn’t legally enforceable. The trustee is *not* obligated to follow your guidance, but a well-crafted letter can significantly influence their decisions. As Ted Cook, an estate planning attorney in San Diego, often explains, “A thoughtful letter of wishes can be the difference between a trustee simply following the letter of the law and truly understanding and honoring your vision for your family’s future.”
I Heard a Story About a Trust Gone Wrong – Can You Share?
Old Man Hemlock had a very specific vision for his children. He wanted them to be successful, but also independent. He created a testamentary trust, distributing funds in stages, contingent on them completing certain educational or professional milestones. However, he never explicitly stated *how* he envisioned those milestones being achieved. His eldest son, driven and ambitious, immediately enrolled in medical school, diligently meeting the trust’s requirements. But his younger son, a gifted artist, felt stifled by the traditional path. He wanted to pursue his passion, but the trust didn’t recognize artistic achievement as a valid milestone. The result? Years of conflict, legal fees, and a strained relationship between the brothers. If Old Man Hemlock had included a letter of wishes, expressing his support for diverse paths to success, the outcome might have been very different. It’s a reminder that legal documents, however comprehensive, can sometimes lack the personal touch needed to navigate complex family dynamics.
How Did Things Work Out For a Family Using a Letter of Wishes?
The Davis family, facing a similar challenge, took a different approach. Mrs. Davis, a successful entrepreneur, wanted to ensure her grandchildren received a quality education, but she also wanted to foster their creativity and encourage them to explore their passions. She created a testamentary trust, and, crucially, included a detailed letter of wishes. In it, she outlined her belief in the importance of both academic achievement and artistic expression. She specifically requested that the trustee consider funding scholarships for music lessons, art classes, or creative writing workshops, in addition to traditional educational expenses. When her grandson, Leo, decided to pursue a career as a professional musician, the trustee, guided by the letter of wishes, was able to approve funding for his music education and equipment. Leo flourished, and the Davis family’s legacy of creativity and innovation continued. This illustrates how a well-crafted letter of wishes can empower a trustee to make decisions that truly reflect your values and wishes, even in unexpected circumstances. Approximately 70% of trustees report finding letters of wishes to be helpful in making discretionary decisions.
“A letter of wishes isn’t about control; it’s about communication. It’s about sharing your hopes and dreams with the person you trust to carry them out.” – Ted Cook, Estate Planning Attorney.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning Law, APC, an estate planning attorney near me: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
- best estate planning attorney in Ocean Beach
- best estate planning lawyer in Ocean Beach
About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning Law, APC.
Feeling overwhelmed by estate planning? You’re not alone. With 27 years of proven experience – crafting over 25,000 personalized plans and trusts – we transform complexity into clarity.
Our Areas of Focus:
Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
Elder Care & Tax Strategy: Avoid family discord and costly errors.
Discover peace of mind with our compassionate guidance.
Claim your exclusive 30-minute consultation today!
If you have any questions about: Who should consider establishing an trust litigation attorney?
OR
How does an MPOA prevent delays in medical care?
and or:
What challenges can arise even with a will in place?
Oh and please consider:
Why is accurate asset management and distribution crucial in estate administration?
Please Call or visit the address above. Thank you.